Korea Overtakes China in MSCI EM Index at 24.87% as AI Chip Rally Lifts Stocks

3 articles · Updated · asiae.co.kr · Jun 23

Korea’s weight in the MSCI Emerging Markets Index reached 24.87% on June 18, overtaking China’s 18.67% to become the index’s second-largest country component behind Taiwan.
Samsung Electronics and SK hynix helped drive the shift, as a rally in memory chips and AI infrastructure stocks sharply increased Korea’s free-float market value in MSCI’s methodology.
Korea’s share has climbed about 13 percentage points from 12% in mid-2020, while China’s has dropped roughly 24 points from 42%; as recently as the first quarter, China still led 25% to 16%.
Taiwan now leads the index at 27.01%, with TSMC and the broader AI supply chain attracting global capital and helping lift MSCI EM earnings estimates 30% this year, versus 12% for MSCI World.
Korea’s stronger index standing still does not secure developed-market status, because MSCI says foreign-investor access and won trading remain below developed-market standards.

Sources

asiae.co.kr1d ago

Korea Surpasses China in MSCI Emerging Markets Index Weight

Aju Press1m ago

Korea fails to make MSCI's developed-market watchlist, KRW cited | Aju Press

asiae.co.kr17h ago

Already Advanced in Scale... Korea Surpasses China in MSCI Emerging Markets Weight - The Asia Business Daily

5 Sources

With Korea and Taiwan surging on the AI wave, is China's tech self-reliance strategy enough to reclaim its dominance in global investor portfolios?

As an AI-driven rally elevates Korea's market, can its reforms finally erase the 'Korea Discount' or will volatility trigger a massive investor exodus?

Does this market shift signal a permanent change in Asia's tech economy, or is it a temporary, AI-fueled investment bubble?

MSCI Emerging Markets Index 2026: AI and Semiconductor Boom Drives Historic Rebalancing and Market Concentration

Overview

In June 2026, the MSCI Emerging Markets Index saw a dramatic rebalancing, with South Korea overtaking China and Taiwan keeping its top spot, while India dropped to a multi-year low. This shift was driven by strong performance and rising investment in AI and semiconductor sectors, especially in Taiwan and South Korea. Taiwan’s TAIEX index surged, fueled by expanded AI investments after the launch of ChatGPT. As a result, global capital flowed into these markets, reshaping the index and highlighting how technological growth in Asia is changing the landscape for emerging market investors.

...